Financialization, income distribution, and aggregate demand in the USA
Discussion paper
Onaran, O., Stockhammer, E. and Grafl, L. 2011. Financialization, income distribution, and aggregate demand in the USA. Oxford University Press (OUP). https://doi.org/10.1093/cje/beq045
| Type | Discussion paper |
|---|---|
| Title | Financialization, income distribution, and aggregate demand in the USA |
| Authors | Onaran, O., Stockhammer, E. and Grafl, L. |
| Abstract | This paper investigates the effects of financialization and functional income distribution on aggregate demand in the USA by estimating the effects of the increase in rentier income (dividends and interest payments) and housing and financial wealth on consumption and investment. The redistribution of income in favor of profits suppresses consumption, whereas the increase in the rentier income and wealth has positive effects. A higher rentier income decreases investment. Without the wealth effects, the overall effect of the changes in distribution on aggregate demand would have been negative. Thus a pro-capital income distribution leads to a slightly negative effect on growth, i.e. the USA economy is moderately wage-led. |
| Journal | Cambridge Journal of Economics |
| ISSN | 0309-166X |
| Publisher | Oxford University Press (OUP) |
| Publication dates | |
| Jan 2011 | |
| Publication process dates | |
| Deposited | 20 Apr 2010 |
| Output status | Published |
| Copyright Statement | Pre-refereed version as permitted by publisher. |
| Additional information | Originally published as discussion paper no 136 (March 2010) by Middlesex University Business School, Department of Economics and Statistics. |
| Digital Object Identifier (DOI) | https://doi.org/10.1093/cje/beq045 |
| Language | English |
| File | File Access Level Open |
https://repository.mdx.ac.uk/item/82871
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